Debate Question

Rockhampton Sofa Company is thinking of setting up a plant in Chengdu, China.Operating data for Rockhampton and Chengdu are as follows:

AYB321 Strategic Management Accounting Tutorial Questions TUTORIAL 9 SUSTAINABILITY Debate Question: Rockhampton Sofa Company is thinking of setting up a plant in Chengdu, China. Operating data for Rockhampton and Chengdu are as follows: If the Chengdu plant is opened, then the Rockhampton plant will be closed. If the Rockhampton plant is closed the employees will almost certainly be unemployed. There is consternation in the local community about the closure, especially among older employees. The Rockhampton plant has few airborne pollutants and does not contaminate waterways and sewers. The affirmative view: You believe that it is more beneficial to the overall company to move the plant to Chengdu due to the advantages associated with the move. Therefore discuss the benefits of moving operations to Chengdu. In doing so, address the financial, social and economic benefits. The negative view: You believe that it is more beneficial to the overall company to keep the plant in Rockhampton due to the advantages associated with remaining in Rockhampton Therefore discuss the benefits of keeping the operations in AYB321 Semester 1, 2016 Page 1 Rockhampton. In doing so, address the financial, social, environmental and economic benefits. Discussion Questions (for Participation Marks): 1. Exercise 17-2 (p531) 2. Exercise 17-8 (p531) 3. Exercise 17-17 (p532) 4. Exercise 17-30 (p534) *** AYB321 Semester 1, 2016 Page 2